"Restricted stock units are stock-based compensation used to reward employees after a certain period of time," says Joseph Safina, founder and CEO of Safina Capital. When initially given, RSUs are simply a promise by a company to issue shares of the company stock to the recipient at a future date. They have no tangible value until that stock is issued when the RSU has vested, which typically happens a few years after the RSU is given or when certain performance metrics are met.[…]
Two companies--DoorDash and Airbnb--that are considered to be darlings by Silicon Valley are gearing up for their initial public offerings. DoorDash is looking at pricing between $75 and $85 a share.
In a revised IPO filing published last week, DoorDash set an initial IPO price range of $75 to $85. That spells a valuation range of $27 billion to $33 billion after accounting for outstanding stock options, warrants, and restricted stock units (RSUs)--well above the $16 billion valuation the company received in a June funding round.[…]
ALEXIS CHRISTOFOROUS: But I want to get more now on the markets and bring in Joseph Safina, founder and CEO of Safina Asset Management. Joseph, good to see you. I don't know about you, but I think we're in a bit of a information vacuum right now for the markets. I mean, earnings season is over. We're now watching and waiting for vaccine news, for stimulus news. What do you see as the next big catalyst for this market?[…]